WIPRO LTD-ADR (WIT) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:WIT - US97651M1099 - ADR
3.06 USD
+0.2 (+6.99%)
3.09 USD
+0.03 (+0.98%)
WIT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 88 industry peers in the IT Services industry. WIT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. WIT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year WIT was profitable.
In the past year WIT had a positive cash flow from operations.
In the past 5 years WIT has always been profitable.
WIT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
WIT has a Return On Assets of 10.30%. This is amongst the best in the industry. WIT outperforms 84.09% of its industry peers.
The Return On Equity of WIT (15.68%) is better than 80.68% of its industry peers.
With a decent Return On Invested Capital value of 11.00%, WIT is doing good in the industry, outperforming 78.41% of the companies in the same industry.
WIT had an Average Return On Invested Capital over the past 3 years of 10.49%. This is significantly below the industry average of 29.60%.
The last Return On Invested Capital (11.00%) for WIT is above the 3 year average (10.49%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 15.68% | ||
| ROIC | 11% |
ROA(3y)9.82%
ROA(5y)10.75%
ROE(3y)15.04%
ROE(5y)16.64%
ROIC(3y)10.49%
ROIC(5y)11.45%
1.3 Margins
With an excellent Profit Margin value of 15.06%, WIT belongs to the best of the industry, outperforming 89.77% of the companies in the same industry.
In the last couple of years the Profit Margin of WIT has declined.
WIT's Operating Margin of 16.76% is amongst the best of the industry. WIT outperforms 87.50% of its industry peers.
WIT's Operating Margin has been stable in the last couple of years.
The Gross Margin of WIT (30.12%) is comparable to the rest of the industry.
WIT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.76% | ||
| PM (TTM) | 15.06% | ||
| GM | 30.12% |
OM growth 3Y-0.16%
OM growth 5Y0.38%
PM growth 3Y-1.54%
PM growth 5Y-1.54%
GM growth 3Y1.04%
GM growth 5Y1.44%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so WIT is creating value.
Compared to 1 year ago, WIT has more shares outstanding
Compared to 5 years ago, WIT has less shares outstanding
WIT has a worse debt/assets ratio than last year.
2.2 Solvency
WIT has an Altman-Z score of 6.10. This indicates that WIT is financially healthy and has little risk of bankruptcy at the moment.
WIT has a better Altman-Z score (6.10) than 81.82% of its industry peers.
The Debt to FCF ratio of WIT is 1.11, which is an excellent value as it means it would take WIT, only 1.11 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of WIT (1.11) is better than 79.55% of its industry peers.
WIT has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of WIT (0.10) is better than 68.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.11 | ||
| Altman-Z | 6.1 |
ROIC/WACC1.94
WACC5.67%
2.3 Liquidity
WIT has a Current Ratio of 2.26. This indicates that WIT is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 2.26, WIT is in the better half of the industry, outperforming 65.91% of the companies in the same industry.
A Quick Ratio of 2.25 indicates that WIT has no problem at all paying its short term obligations.
The Quick ratio of WIT (2.25) is better than 67.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.25 |
3. Growth
3.1 Past
WIT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.68%, which is quite good.
WIT shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.52% yearly.
WIT shows a small growth in Revenue. In the last year, the Revenue has grown by 1.10%.
Measured over the past years, WIT shows a small growth in Revenue. The Revenue has been growing by 7.86% on average per year.
EPS 1Y (TTM)14.68%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%0.98%
Revenue 1Y (TTM)1.1%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%1.77%
3.2 Future
WIT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 6.37% yearly.
WIT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.53% yearly.
EPS Next Y4.54%
EPS Next 2Y4.77%
EPS Next 3Y5.37%
EPS Next 5Y6.37%
Revenue Next Year2.21%
Revenue Next 2Y3.83%
Revenue Next 3Y4.45%
Revenue Next 5Y3.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 21.86, the valuation of WIT can be described as rather expensive.
Compared to the rest of the industry, the Price/Earnings ratio of WIT indicates a somewhat cheap valuation: WIT is cheaper than 64.77% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.39. WIT is around the same levels.
A Price/Forward Earnings ratio of 19.94 indicates a rather expensive valuation of WIT.
Based on the Price/Forward Earnings ratio, WIT is valued a bit cheaper than the industry average as 61.36% of the companies are valued more expensively.
WIT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.84, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.86 | ||
| Fwd PE | 19.94 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than WIT, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of WIT indicates a somewhat cheap valuation: WIT is cheaper than 64.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.7 | ||
| EV/EBITDA | 11.71 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of WIT may justify a higher PE ratio.
PEG (NY)4.82
PEG (5Y)2.57
EPS Next 2Y4.77%
EPS Next 3Y5.37%
5. Dividend
5.1 Amount
WIT has a yearly dividend return of 0.05%, which is pretty low.
WIT's Dividend Yield is a higher than the industry average which is at 0.44.
With a Dividend Yield of 0.05, WIT pays less dividend than the S&P500 average, which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.05% |
5.2 History
On average, the dividend of WIT grows each year by 38.62%, which is quite nice.
WIT has been paying a dividend for at least 10 years, so it has a reliable track record.
The dividend of WIT decreased recently.
Dividend Growth(5Y)38.62%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
WIT pays out 85.26% of its income as dividend. This is not a sustainable payout ratio.
WIT's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP85.26%
EPS Next 2Y4.77%
EPS Next 3Y5.37%
3.06
+0.2 (+6.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustryIT Services
Earnings (Last)
Earnings (Next)
Inst Owners14.78%
Inst Owner Change6.41%
Ins Owners64.1%
Ins Owner ChangeN/A
Market Cap32.05B
Revenue(TTM)896.55B
Net Income(TTM)135.00B
Analysts53.62
Price Target2.84 (-7.19%)
Short Float %4.4%
Short Ratio16.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.05% |
Yearly Dividend0.07
Dividend Growth(5Y)38.62%
DP85.26%
Div Incr Years1
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.9%
Min EPS beat(2)-3.83%
Max EPS beat(2)0.03%
EPS beat(4)2
Avg EPS beat(4)-0.86%
Min EPS beat(4)-3.83%
Max EPS beat(4)3.1%
EPS beat(8)3
Avg EPS beat(8)-0.26%
EPS beat(12)4
Avg EPS beat(12)-1.95%
EPS beat(16)4
Avg EPS beat(16)-3.43%
Revenue beat(2)0
Avg Revenue beat(2)-2.73%
Min Revenue beat(2)-2.88%
Max Revenue beat(2)-2.58%
Revenue beat(4)0
Avg Revenue beat(4)-2.85%
Min Revenue beat(4)-3.42%
Max Revenue beat(4)-2.51%
Revenue beat(8)0
Avg Revenue beat(8)-2.91%
Revenue beat(12)0
Avg Revenue beat(12)-3.21%
Revenue beat(16)0
Avg Revenue beat(16)-3.04%
PT rev (1m)0.18%
PT rev (3m)-3.69%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.49%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-2.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.25%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)0.99%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.86 | ||
| Fwd PE | 19.94 | ||
| P/S | 3.21 | ||
| P/FCF | 19.7 | ||
| P/OCF | 17.77 | ||
| P/B | 3.34 | ||
| P/tB | 5.79 | ||
| EV/EBITDA | 11.71 |
EPS(TTM)0.14
EY4.58%
EPS(NY)0.15
Fwd EY5.02%
FCF(TTM)0.16
FCFY5.08%
OCF(TTM)0.17
OCFY5.63%
SpS0.95
BVpS0.92
TBVpS0.53
PEG (NY)4.82
PEG (5Y)2.57
Graham Number1.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.3% | ||
| ROE | 15.68% | ||
| ROCE | 15.49% | ||
| ROIC | 11% | ||
| ROICexc | 21.77% | ||
| ROICexgc | 72.41% | ||
| OM | 16.76% | ||
| PM (TTM) | 15.06% | ||
| GM | 30.12% | ||
| FCFM | 16.28% |
ROA(3y)9.82%
ROA(5y)10.75%
ROE(3y)15.04%
ROE(5y)16.64%
ROIC(3y)10.49%
ROIC(5y)11.45%
ROICexc(3y)18.66%
ROICexc(5y)20.95%
ROICexgc(3y)47.85%
ROICexgc(5y)48.79%
ROCE(3y)15.2%
ROCE(5y)16.7%
ROICexgc growth 3Y6.71%
ROICexgc growth 5Y4%
ROICexc growth 3Y1.11%
ROICexc growth 5Y-3.29%
OM growth 3Y-0.16%
OM growth 5Y0.38%
PM growth 3Y-1.54%
PM growth 5Y-1.54%
GM growth 3Y1.04%
GM growth 5Y1.44%
F-Score5
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.11 | ||
| Debt/EBITDA | 0.49 | ||
| Cap/Depr | 57.05% | ||
| Cap/Sales | 1.77% | ||
| Interest Coverage | 19.56 | ||
| Cash Conversion | 90.89% | ||
| Profit Quality | 108.1% | ||
| Current Ratio | 2.26 | ||
| Quick Ratio | 2.25 | ||
| Altman-Z | 6.1 |
F-Score5
WACC5.67%
ROIC/WACC1.94
Cap/Depr(3y)41.69%
Cap/Depr(5y)52.21%
Cap/Sales(3y)1.49%
Cap/Sales(5y)2.03%
Profit Quality(3y)123.26%
Profit Quality(5y)112.51%
High Growth Momentum
Growth
EPS 1Y (TTM)14.68%
EPS 3Y3.89%
EPS 5Y8.52%
EPS Q2Q%0.98%
EPS Next Y4.54%
EPS Next 2Y4.77%
EPS Next 3Y5.37%
EPS Next 5Y6.37%
Revenue 1Y (TTM)1.1%
Revenue growth 3Y4.05%
Revenue growth 5Y7.86%
Sales Q2Q%1.77%
Revenue Next Year2.21%
Revenue Next 2Y3.83%
Revenue Next 3Y4.45%
Revenue Next 5Y3.53%
EBIT growth 1Y4.09%
EBIT growth 3Y3.88%
EBIT growth 5Y8.27%
EBIT Next Year18%
EBIT Next 3Y9.94%
EBIT Next 5Y6.55%
FCF growth 1Y-0.5%
FCF growth 3Y19.5%
FCF growth 5Y14.93%
OCF growth 1Y3.07%
OCF growth 3Y15.21%
OCF growth 5Y10.98%
WIPRO LTD-ADR / WIT FAQ
Can you provide the ChartMill fundamental rating for WIPRO LTD-ADR?
ChartMill assigns a fundamental rating of 6 / 10 to WIT.
Can you provide the valuation status for WIPRO LTD-ADR?
ChartMill assigns a valuation rating of 4 / 10 to WIPRO LTD-ADR (WIT). This can be considered as Fairly Valued.
What is the profitability of WIT stock?
WIPRO LTD-ADR (WIT) has a profitability rating of 7 / 10.
Can you provide the expected EPS growth for WIT stock?
The Earnings per Share (EPS) of WIPRO LTD-ADR (WIT) is expected to grow by 4.54% in the next year.
How sustainable is the dividend of WIPRO LTD-ADR (WIT) stock?
The dividend rating of WIPRO LTD-ADR (WIT) is 3 / 10 and the dividend payout ratio is 85.26%.